The VIX, Fear and Greed Index, Macro Barometer to time the market for high growth stock

This was Last week


This is today


It is accurate is it not ?? Let alone if it is combined with technical analysis.
Start buy drip-feeding (DCA and buy in a smaller chunk) when barometer is closed to extreme fear and The VIX close to the top. Start selling in a smaller chunk (drip selling) when barometer close to extreme greed and the VIX is bottoming.

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Only recently seen this.

Excellent tool. This combined with WSJ earnings forecasts will be gamechanging.

Start selling what? The VIX can remain low for a long time during bull markets and you will miss out terribly.

@MatthewLM We are talking about the high growth stock, not index fund or well diversified fund. Also in the current climate, which is “a bear market” not bull market. In the bear market the price tend to be moving along the channel,

There is nothing to prevent it to be combined with drip selling (not selling all the position in one go) and/or drip feeding to keep your price average as low as possible.

The point above is just when to start triggering “drip selling” or “drip buying” rather than randomly buying them at any price at any time even at the highest recent price, or selling it at the lowest recent price

“High growth stock” is very volatile and highly sensitive to sentiment heat in the market, they could go down 30% in a a few week but only up 100% with no major catalyst (apart from sentiment) regarding individual stock in question in the following week. This is just of many example.


You start selling in smaller chunk on the way down once VIX is at the highest. You do not time the market for index fund such as S&P500. especially if it is very well diversified. The range of price movement is too small to take advantage of market inefficiency.

When VIX is at the highest point in the bear market there is more high probability the price for “high growth” stock will be down again rather than up, Unless there is a major catalyst. OF course this is not they will not go up above the highest recent point. But the probability is much lower.

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Certainly not my strategy, but I’m interested to see how it goes. There’s two ways to do this:

  1. Set up two pies, one to do the strategy, and the other to track what would happen if you only bought and held.

  2. Only do the strategy, but use Google Finance to measure buying and holding performance.

Maybe even post the graphs live on a webpage like I have here: https://cavanhagan.com/investing or something similar, would be a cool experiment to follow.

Correct again today isn’t it ??


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Incoming FED meeting to watch

With countries informing citizens to evacuate Ukraine and some rumours about the 16th feb strike date, am guessing it’s all been baked into Vix or is there a separate tool for it?

Barometer is Correct again today isn’t it ??


The possibility that Russia will invade Ukraine is probably much lower now

U.S. stock futures jump as Russia says some troops are heading back to base

Dow futures jump more than 400 points as Russia pulls back some troops from Ukraine border.

Could be fake news as Donald Trump calls it, cos we live in a time where information is easily generated by anyone and far reaching audience…everything should be taken with a pinch of salt.

There use to be a time people would travel hundreds of miles seeking information which was good quality but scarce and now we have easy access to information many of which are junk

We are never gonna get it right :roll_eyes:

The Macro Barometer is correct again today isn’t it ??


On this News the Price of Oil, Gold drop today
Oils and gas

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The Macro Barometer is correct again today isn’t it ??


I think for me, constantly referring to a fear & greed index would absolutely drive me up the wall and insane tbh :roll_eyes: !

If it feeds into a workable short-term strategy and really helps then that’s fine but I prefer taking emotion out of the equation & staying locked into long-term solid growth stocks (imho).

It will depend on the type of your investment.
What type of investment are you holding ??. Is it well diversified fund, mature value stock or high growth stocks?? If you just invest in index funds, well diversified fund, a highly mature long establish companies for dividend play, then it might not be worthy keeping your eye closely. This is a type of investment where it suits simply invest and forget, waiting for dividend to be paid.

But for high growth stock high risk/high rewards in the bear market with a lot of FUD in the market even the good one it really makes the difference as the volatility is very high, the swing between low and high within weeks could be could be 100%+. Keep in mind the stock market and the price of individual stocks are not only ruled by the fundamental of the companies, but there is also exuberance (or irrational exuberance) that could drive the price significantly.

Look at the the example I I posted previous when the difference is 100%.
Also recent examples, Shopify (SHOP) reporting earning yesterday, beat the earning and revenue but forward guidance is bad, the stock drop almost 20% in a single day.

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Yes, sure fully understand @adindas your comments :grinning: - I’m more diversified globally and in it longer term 5-10+ year mature stocks etc :+1:

Correct again today. This is what scared the market

Global stocks fall as Biden says Russian invasion could happen in next ‘several days’

President Biden says threat of Russian invasion of Ukraine remains ‘very high’
Feb 17, 2022 CNBC Television




Correct again today


Correct again today